Bridgestone sets sales, income goals in Mid-Term Management Plan
Bridgestone Corp. plans to reach four trillion yen in sales and an 80% increase in operating income by 2012, according to details of the company's recently published Mid-Term Management Plan.
Bridgestone says its strategy will be based on "four fundamental management policies." They include:
1. To always aim for "the higher level." "Bridgestone will enhance business domain both with the growing tire market and by leveraging competitive advantages. This will consist of reinforcing products where Bridgestone has preceded its competitors and securing overwhelming competency... Bridgestone will increases added value to tires that include strategic product groups such as run-flat ties, ultra-high performance tires and winter tires, as well as Greatec (wide-base) and low-profile tires for trucks and buses.
"Bridgestone will make full use of Bridgestone Bandag LLC... to provide package solutions to customers in the truck and bus tire business.
"Bridgestone seeks to enhance competitiveness and air for 'the higher level' in raw materials and development and manufacturing technology."
In addition, the company says it intends to "enhance quality in its corporate governance and CSR activities." The tiremaker also plans to improve its environmental management policies.
2. To clarify the long-term strategy and proceed with the integration and expansion of business domain. "Bridgestone will emphasize uniformity in all resources held within Bridgestone and strengthen and effectively utilize vertical integration."
3. To aim to be a real global corporation, adopting SBU organization. "Through efforts to expand sales of strategic products and to rationalize operations, Bridgestone aims to increase operating income by around 80%. A supply system will be expanded to support this."
4. To aim for the optimum management for the entire group. "In order to realize planned performances, Bridgestone will enhane resources and execute initiatives consistent with key strategies. Bridgestone will shift away from its current resource model with an eye on becoming lean and strategic."
"The goal of Bridgestone is to establish the status of being the undisputed world number one tire and rubber company both in name and reality."